Good day, and thank you for standing by. Welcome to the Barnes Group Incorporated Q3 2021 Earnings Conference Call and Webcast. At this time, all participants are in a listen only mode. After the speaker's presentation, there will be question and answer session. To ask a question during the session, you will need to press star one on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star zero. I would now like to hand the conference over to your speaker today, Bill Pitts, Director, Investor Relations. Please go ahead. Thank you, operator. Good morning, and thank you for joining us for our Q3 2021 Earnings Call. With me are Barnes Group's President and Chief Executive Officer, Patrick Dempsey, and Senior Vice President and Chief Financial Officer, Julie Streich. If you have not received a copy of our earnings press release, you can find it on the investor relations section of our corporate website at bginc.com. During our call, we will be referring to the earnings release supplement slides, which are also posted on our website. Our discussion today includes certain non-GAAP financial measures which provide additional information we believe is helpful to investors. These measures have been reconciled to the related GAAP measures in accordance with SEC regulations. You will find a reconciliation table on our website as part of the press release and in the Form 8-K submitted to the Securities and Exchange Commission. Be advised that certain statements we make on today's call, both during the opening remarks and during the question and answer session, may be forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected. Please consider the risks and uncertainties that are mentioned in today's call and are described in our periodic filings with the SEC. These filings are available through the investor relations section of our corporate website at bginc.com. Let me now turn the call over to Patrick for his opening remarks, then Julie will provide a review of our financial results and details of our updated outlook for 2021. After that, we'll open up the call for questions. Patrick. Thank you, Bill, and good morning, everyone. Barnes Group delivered a very good Q3 of financial performance, with 20% organic sales growth, a 180 basis points increase in adjusted operating margin, and an 80%+ increase in EPS year over year. Sequentially, each of those metrics improved as well. Clearly, last year was highly impacted by the global pandemic. Nonetheless, the demand environment overall improved across the portfolio as each of our SBUs generated double-digit organic sales growth. Similarly, orders were seasonally good as we generated a book-to-bill of 0.9x for both industrial and aerospace. Industrial book-to-bill in Q3 is typically impacted by the summer holiday season, particularly in Europe. That said, the ongoing impact of auto semiconductors lingered, and I'll address that in more detail shortly. In aerospace, orders were healthy for a fourth straight quarter. Moving to our segment discussion, beginning with industrial. Organic sales growth was 17%, while organic orders growth was 3%. As we exited Q3, manufacturing PMIs in the U.S. and Eurozone remained well in expansionary territory, though not as robust as they were entering the quarter. China continues to hover around the neutral 50 mark. The continuing semiconductor issue affecting automotive builds has worsened, prompting IHS to make a significant downward adjustment to their global automotive production forecast in September. Relative to their prior view, 2021 production was reduced by five million units or 6%, and 2022 was reduced by 8.5 million units or 9%. The decrease corresponds to customers extending shutdowns and pushing out demand for our products. For 2022, IHS expects global auto production to grow 11% over this year, so still a rebound. Supply chain disruptions, including extended raw material lead times, inflation, and freight costs, have also persisted throughout the quarter, and we expect them to continue through the remainder of the year and into the first half of 2022. In spite of the headwinds, the industrial team has done a great job to improve margins both year-over-year and sequentially. Operating margin was 13%, up 60 basis points from a year ago, and 130 basis points sequentially. Inflationary pressures are being mitigated to the extent possible through pricing actions and raw material pass-through arrangements. Our Barnes Enterprise System has been employed to capture half inflation pressure. We saw approximately $2.5 million in Q3, and we now forecast a similar amount in Q4. Within Molding Solutions, organic orders were up low single digits with medical rebounding up year-over-year and sequentially. Automotive orders were solid up mid-teens, driven by a strong quarter in Asia. Packaging and personal care orders were soft compared to a year ago. With respect to organic sales, we generated a 15% increase over the prior year quarter. Personal care and medical saw good sales growth, while automotive was particularly strong. However, with anticipated supply chain factors in mind, our organic sales growth outlook has been trimmed to the low teens for the full year, a bit softer than our prior view. At Force & Motion Control, organic orders were up 27% with organic sales up 24%. On a sequential basis, sales and orders were approximately flat. Our largest end market with this business, sheet metal forming, saw robust orders and sales growth year-over-year, and the same is true for our industrial end markets within FMC. Supply chain disruptions, including freight delays, are expected to influence near-term customer orders. Nonetheless, our full-year 2021 organic sales growth is up slightly from our prior view with a revised expectation of up high teens. Engineered Components once again generated solid organic sales growth on a year-over-year basis, up 15%, primarily driven by industrial end markets. Our automotive production end market sales were up modestly, though Q3 saw semiconductor and supply chain issues intensify, impacting both orders and sequential sales growth. The automotive semiconductor issue impacts this business the most, and we saw a Q3 push out of approximately $6 million in revenue, which was double what we anticipated. We now forecast a Q4 impact of a similar $6 million. General industrial markets remain very healthy and are helping to mitigate some of the semiconductor impact. For Engineered Components, our full year organic sales growth is now estimated to be up in the mid-teens, a bit lower than our prior view. At Automation, we produced a solid quarter of 24% organic sales growth as global trends towards industrial robotics and complex end-of-arm tooling solutions remain favorable. As noted earlier, with seasonal effects, year-over-year organic orders were flat. However, we continue to expect 2021 to deliver organic growth of approximately 20% on par with our July expectation. To close my Industrial discussion, the business delivered really good Q3 performance. As we look forward, the near term challenges of the current operating environment appear likely to persist. That said, the team is working diligently to lessen the various headwinds facing the business. For the segment, we forecast 2021 organic growth in the mid-teens, consistent with our prior view. We now anticipate operating margins of 11.5%-12%, a bit softer than our prior expectation, with the decline primarily driven by the current economic environment. Moving to Aerospace. Sales improved 30% over last year and 8% sequentially from Q2. Our original equipment manufacturing and aftermarket businesses each generated excellent results. Adjusted operating margin improved 490 basis points from a year ago and 130 basis points sequentially. The aerospace environment continues to show recovery progress. Global passenger traffic and flight activity are expected to increase further as international markets reopen. Aerospace freight markets continue to be strong. All of that contributes to a strengthening aftermarket. Correspondingly, our sequential sales growth has been good, and we expect that trend to continue. Solid order activity continued in Q3, with total orders up approximately 70% versus a year ago. OEM orders were up approximately 80%, with the aftermarket being up approximately 50%. Within the aftermarket, MRO was up 40%+ and spare parts up 70%. Our 2021 outlook for Aerospace is for total sales to be up low single digits. Within the segment, OEM sales are forecast to be up mid-single digits, MRO down low single digits, and spare parts down in the low to mid-teens. The latter a bit better than our July view. Segment operating margin is anticipated to be approximately 14%, slightly higher than our prior outlook, benefiting from the better spare parts mix. In closing, a solid Q3 of financial performance in the face of some accumulating pressures. As we look ahead, we're taking the necessary steps to limit the risks noted with our primary focus on pricing initiatives and other actions directed to cost management. Overall, we are positive in the ongoing demand we are seeing from our customers and the underlying strength of our end markets. Moving forward, our growth investments in strategic marketing and our sales force, digitalization and innovation should enhance our ability to power up the recovery curve and allow us to deliver further stakeholder value. Now let me pass the call over to Julie for details of our quarterly performance. Good morning, everyone, and thank you, Patrick. Let me begin with highlights of our Q3 results on slide five of our supplement. 21% from the prior year period, with organic sales increasing 20%. Adjusted operating income was $43.9 last year, while adjusted operating margin was 13.5%, up 180 basis points from a year ago. Our adjusted results include a small amount of restructuring in both the current and prior year quarters. Interest expense was $4 million, an increase of 300,000 over last year as a result of a higher average interest rate, offset in part by lower average borrowings. As we foreshadowed a quarter ago, we saw sequentially lower interest expense as our debt to EBITDA ratio has continued to improve, driven by the recovery in our business and active cash management. Sequentially, our interest expense was lower by $448,000. For the quarter, our effective tax rate of 27.6% compared with 44.1% in Q3 of 2020 and 37.6% for full year 2020. As compared to the full year 2020 rate, our Q3 rate is benefiting from the absence of tax expense related to the sale of the Seeger business in 2020, a benefit relating to the tax basis of goodwill at Automation, the positive resolution of a foreign tax matter in the current year quarter, and a favorable mix in earnings based on tax jurisdictions. These items were partially offset by a charge relating to U.K. legislative changes. Net income was $27.9 million or 0.55 per diluted share, compared to $15.4 million or 0.30 per diluted share a year ago. Now we'll turn to our segment performance, beginning with Industrial. Q3 Industrial sales were $232 million, up 18% from a year ago, while organic sales increased 17%. Like last quarter, the solid growth reflects volume increases across all our SBUs. Favorable foreign exchange increased sales by approximately 1%. Sequentially, sales decreased slightly as they were further impacted by the semiconductor and supply chain issues that Patrick mentioned. Industrial operating profit was $30.1 million, up 23% from 24.4 million last year. Operating profit benefited from the contribution of higher sales volumes, offset in part by higher personnel costs, which include incentive compensation, higher sourcing costs inclusive of freight, and ongoing costs incurred in support of segment growth initiatives. Operating margin was 13%, up 60 basis points from a year ago and 130 basis points sequentially. Moving now to Aerospace. Sales were $94 million, up 30%, driven by a 23% increase in our OEM business and a 46% increase in our aftermarket business. On a sequential basis, total Aerospace sales increased 8% from Q2 of 2021, with OEM up 5% and aftermarket up 16%. Operating profit was $13.6 million, doubling the 6.8 million in last year's Q3. Excluding a small amount of restructuring in the current and prior year periods, adjusted operating profit was $95, up 95% from a year ago. Adjusted operating profit benefited from the contribution of higher sales volumes and favorable productivity, offset in part by higher personnel costs, including incentive compensation. Adjusted operating margin was 14.8%, up 490 basis points from last year and 130 basis points sequentially. Aerospace OEM backlog ended September at $665 million, down 4% from June 2021, and we expect to convert approximately 40% of this backlog to revenue over the next year. Before moving to our cash flow discussion, I'd like to make you aware of an adjustment to our reported backlog. During the quarter, we noted that our June backlog included a portion of unshipped orders that had already been recognized in revenue under percentage of completion. Accordingly, a downward adjustment of $46 million at Industrial and 19 million at Aerospace was made during Q3. This adjustment is reflected in our September ending backlog and no further adjustments are anticipated. Earlier reported sales, orders, and book-to-bill were not impacted. Moving to cash flow performance. Year-to-date cash provided by operating activities was $128 versus 164 million last year, with free cash flow of 101 million, down from $134 million last year. Capital expenditures were $27 million, down approximately 3 million from a year ago. As a reminder, year-to-date operating benefit from working capital, as cash management was a significant focus during the pandemic. Their credit agreement was 2.6 times at quarter end, down from 2.9x at the end of last quarter. $1 million during Q3. We did not repurchase shares, and approximately 3.6 million shares remain available under the board's 2019 stock repurchase authorization. Turning to slide six of our supplement, let me provide you with our updated financial outlook for 2021. Organic sales are forecast to be up 11%-12% for the year, consistent with our prior view. Foreign exchange is expected to have about a 2% favorable impact on sales, while divested Seeger revenues will have a small negative impact. Adjusted operating margin is forecast to be approximately 12.5%, down slightly from 13% in our July outlook. We expect a small amount of residual restructuring charges in Q4, which we will take as an adjustment to 2021 net income. Adjusted EPS is expected to be in the range of $1.83-1.93 per share, up 12%-18% from our 2020's adjusted earnings per share of $1.64. This expectation reflects a decrease at the top end of our previous range of $1.83-1.98 related items. Our interest expense remains approximately $60 million, 1 million lower than our previous estimate. Estimated CapEx of $40 million is down from our prior view of 50 million. Average diluted shares of 51 million is consistent with our prior view. Cash conversion is now anticipated to be approximately 120%, an increase over our prior expectation of greater than 110%. To close, financially, we delivered a good Q3. Looking forward, as Patrick mentioned, there are some near-term economic pressures to overcome as we close out the year. Leveraging the Barnes Enterprise System, our team is focused on executing comprehensive mitigation plans. In the meantime, our cash generation remains solid and our balance sheet supports ongoing growth investments expected to further improve financial performance and long-term shareholder value. Operator, we will now open the call for questions. Ladies and gentlemen, at this time, if you would like to ask a question, please press star one on your telephone keypad. If you would like to withdraw your question, press the pound key. Please stand by for your first question. Your first question comes from Matt Summerville with D.A. Davidson. Your line's open. .....teens range that we've seen the last few quarters, and we wouldn't expect them therefore to normalize until you see either input cost relief, supply chain relief, et cetera. What's the right way to be thinking about that looking out over the next couple of quarters? Matt, can you repeat the question? We didn't catch the beginning. Yeah, sorry about that. On industrial, with the moving pieces you're seeing in the business, are incrementals likely to stay stuck in this sort of high teens range? Or are there things, levers you can pull to start to get those incrementals back to where they ought to be? Or are we basically, you know, gonna stay here until you get input cost and/or supply chain relief? Thanks, Matt. Well, relative to margins, what we've seen is a continued improvement sequentially year over year. The team has done a really nice job at sequentially throughout the year, improving margins with some increase in inflation pressures, as I noted. Two factors that I think are hitting margins at the moment are the inflationary costs as well as some of the sales pressure on the top line as a result of some of the semiconductor issues. We see the semiconductor top line issue continuing to improve, both from an Engineered Components standpoint and then also from, on a go-forward basis from a Molding Solutions standpoint, particularly mold. With those continued increase in revenues, we'll see the flow through there. Relative to the inflationary supply chain issues, what the team has done a wonderful job of is offsetting any costs or a lot of the costs that have come from raw material issues with respect to pricing initiatives and passing on those costs. The area that has been more challenging is on the freight, and that being, you know, freight of our own products internally from within businesses as we ship product overseas. That area continues to be a key area of focus. Overall, I would expect that as we continue to move forward, margins, the intent is for margins to continue to expand with the team achieving 13% this quarter, which was 130 basis points improvement sequentially. Got it. Just as a follow-up, with respect to M&A, can you talk about actionability in the pipeline, thoughts on maybe Barnes doing a bigger deal? Where do you be comfortable taking leverage, and whether or not there may be, you know, something more, you know, more chunkier in size in your funnel at the present time? Thank you. Thanks. Well, on the M&A side of the house, we continue to be very active in terms of our due diligence around targets that align with our strategic initiatives. To that end, you know, a primary area of focus continues to be on the industrial side with respect to our Automation SBU as well as our Molding Solutions business. Across the other parts of the portfolio, we continue to look at targets as well, but they have been, you know, probably a little secondary to the two primary areas of Automation and Molding Solutions. With respect to the pipeline, we have, you know, one of the areas we've continued to focus on is cultivating deals as opposed to participating in, you know, auctions. Not that we wouldn't participate in an auction. We're pleased with some of the progress that's been made. At the same time, you know, we don't control the timing. As you've seen with our balance sheet, we've continued to pay down debt and delever since the pandemic. We're building dry powder relative to our future goals of M&A. Thank you. Thank you. Thanks, Pat. All right. Your next question comes from Christopher Glynn with Oppenheimer. Your line's open. Yeah, thanks. Good morning. Morning. Congrats on a good Q3. I was curious, the industrial orders and backlog, you know, coming in a little on the light side. I mean, really in the context of we're seeing a lot of companies, you know, really build backlog and can't keep up with orders. I know you have your own channels in early, mid, late cycle orientation. I'd rather you explain that kind of disconnect than I speculate. Yeah. Well, the backlog side on the industrial, for our industrial business, I would argue has been, you know, primarily consists of the molds business as being a primary driver. Invariably what we've seen is a continued somewhat lumpiness with regard to mold orders. As such, you know, from quarter to quarter, we've seen, you know, ups and downs relative to the timing of receipts. With this particular quarter, what we saw was continued strength in medical, with it being up, year over year and sequentially. Where we saw some softness was in the, personal care and packaging, mold side of the business. While personal care had good sales in the quarter, orders were lighter. I think that's the primary contributor. We have, you know, again, the teams have done a really nice job of meeting customers' expectations even through the supply chain issues. To be honest, that has partially contributed to some of the freight charges I mentioned as well, because if we push product expedited for it to, you know, overcome some of the supply chain issues, it comes at a cost. Great. Thanks for that color. You know, I'm just curious if we could take a big picture view and kind of step back to thinking about how you might step back $130 million-$140 million industrial OP over the cycle, you know, where you were for a few years. In particular, I think Gimatic and Synventive are the key cyclical levers to get that. You know, do you see that earnings power kind of fully intact, or has there, you know, been a little skating along the way? No, I think the two businesses you've referenced, you know, continue to be very well positioned in terms of their market leadership. With respect to Synventive, clearly there's a cycle that comes with the program launches. Right now we remain very positive in terms of the outlook there, particularly as it pertains to the transition towards electric vehicles. You know, we've seen a nice uptick now for a number of quarters on the, you know, program launches with, you know, some really nice strength across all three regions in the quarter. As it pertains to, you know, just some of the near term activities, we do believe that there are decisions being made by the auto OEs relative to timing of release of certain projects. When I say timing, I'm talking quarters. I'm not talking, you know, anything extended, but I do think that they're being judicious as they manage their businesses in the current semiconductor situation. With regards to Gimatic, you know, a really nice quarter, up 24% year-over-year, and continue to, you know, excel in terms of the products they're bringing to market. Just a great range of innovative solutions for robotics and end-of-arm complex tooling systems, both of which I think are, you know, in high demand across multiple industries. But they are definitely, you know, looking to expand beyond their current product lines with the launch of vacuum earlier this year as a complementary, you know, revenue stream on a go-forward basis. The goal for us is to get back clearly to the mid-teens for industrial and then to continue to march on from there. Great. Clarification question. Did you say that you expect industrial margin in Q4 to improve sequentially again? No, it's down slightly because of the pressures of the semiconductors and the supply chain challenges that we're seeing in the short term. Gotcha. Thank you. Thank you. Thanks, Chris. Your next question comes from Myles Walton with UBS. Your line's open. Good morning, Julie, Patrick, Bill. You got Lou Arcangeli on for Myles. Good morning, Lou. Morning. I guess the question I had was around the cash flow. Is there anything to be mindful of as we go into the fourth quarter, just that would make cash flow step down sequentially from, you know, the level it was in Q3? No, I don't anticipate anything that we should be mindful of. I think as we continue to see trends that go into year end, sometimes the conversion isn't traditionally what it is earlier in the year. There's nothing atypical we're expecting. I think greater than 120% or approximately 120% is still a very nice conversion. No, no, definitely. It just still seems like there could be upside that still. Then just one other one. I may have missed it on the call earlier. Did you give the breakdown for RSPs and MRO? Again, I apologize if I missed it. No issue. What we did was we highlighted the breakdown of orders and, you know, just so if you wanna. Are you interested in order or sales? Sales growth, sorry. Okay. On the sales side, aftermarket was up approximately 40%+ in the quarter. Out of that, MRO up approximately 40% and RSPs were up 70%. Okay, that's great. Thank you very much. Sequentially, aftermarket was up approximately 16%. Great. Then just one more quick one. The press release I think came out, maybe it was yesterday or earlier in the week on the Rolls-Royce. Was that just a continuation of, you know, I guess, of product or sales, or was there any expansion in there? Excuse me. It was primarily an expansion through 2025 of an existing set of offerings that we had to Rolls-Royce. What was, I think, significant about that is that the recent sale of the business, the ITP Aero business, which was a subsidiary of Rolls-Royce, as that transaction took place, our goal was to secure the relationship with the new owners and with ITP Aero on a go-forward basis. A nice win there by the aerospace team. Great. Thank you very much. Thanks, Lou. Thank you. Your next question comes from Pete Osterland with Truist Securities. Your line's open. Hey, good morning. This is Pete on for Michael Ciarmoli. Thanks for taking my question this morning. Morning, Pete. Morning. Wanted to ask you about the backlog for aerospace OEM. Just, you know, given that you're seeing continued sequential recovery in that market, what drove the 4% decline for the backlog versus the second quarter? Are there any concerns around the current bookings environment, or was it just more of a quarterly timing issue? Yeah, there's no concerns at all. The primary driver of that decline was the adjustment we made to back out the percentage of completion that had been included. Really no underlying concerns at all. Okay, great. Thanks. Just sticking with aerospace, you know, looking into next quarter and into 2022, are you anticipating any issues meeting the labor requirements you need in order to be able to, you know, meet rising aerospace demand as, you know, hopefully have a strong recovery in 2022? You know, is there any risk of labor shortages or accelerating wage inflation? I think labor is an area that we're continually focused on across the businesses, both industrial and aerospace. I would argue that aerospace, I think, has seen more labor pressure than has the industrial side of our business. That said, the team has done a really nice job of continuing to put programs in place, recruiting programs, and looking at how to, you know, attract talent to our industry and to specifically to Barnes. It's an area that I think the entire industry is keeping a watchful eye on. We've been making nice progress. Hasn't necessarily caused anything significant in terms of issues in the short term, but clearly we are recruiting in anticipation of increases throughout 2022. The team is being very proactive out in front of it and being creative in terms of how we attract talent to Barnes. All right. Thank you very much for taking the questions. Thank you. All right. Thank you. We don't have any further question at this time. I'll hand the call back to Bill Pitts for any closing remarks. Great. Thank you. We would like to thank all of you for joining us this morning and look forward to speaking with you next on December 14 with our 2021 virtual Investor Day. Operator, we will now conclude today's call. Thank you. That concludes today's conference. Thank you all for joining. You may now disconnect.